Bitcoin surged toward the $80,000 mark after Iran announced that the Strait of Hormuz was fully open to commercial traffic for the remaining duration of a ceasefire. This announcement eased tension at one of the world’s crucial energy chokepoints and spurred broader risk-on behavior across markets.
The leading cryptocurrency increased by 5% on this news, reaching as high as $77,700 according to data from CryptoSlate. This uptick extended a weeklong rally that has enhanced Bitcoin’s value nearly 7% since dropping below $70,000, marking its strongest level since the early February crash.
Bitcoin (BTC) Data:
$77,698.27 (+5.64%) Market Cap: $1.56T | 24h Volume: $49.37B | All-Time High: $126,198.07
Categories: Coin, Layer 1, PoW
The rally triggered significant liquidation across leveraged crypto positions. According to CoinGlass data, about $243 million in liquidations occurred within an hour, with most losses affecting traders anticipating further declines.
For context, Bitcoin short sellers recorded over $100 million in losses during this period.
Over a 24-hour timeframe, total liquidations exceeded $720 million, marking one of the largest market setbacks since mid-March.
Iran’s Announcement on Strait of Hormuz
The rebound in Bitcoin coincided with traders associating its rise to changes in the macroeconomic landscape. On Friday, Iran declared through Foreign Minister Seyed Abbas Araghchi’s post on X that the Strait of Hormuz was completely open for commercial vessels during the ceasefire period.
“In line with the ceasefire in Lebanon, passage for all commercial vessels through the Strait of Hormuz is declared entirely open for the remaining period,” said Araghchi. He noted that ships must adhere to routes coordinated by Iranian maritime authorities.
President Donald Trump confirmed this update and expressed gratitude towards Iran for reopening the waterway. Following this news, oilprices.com data indicated a decline in oil prices by over 11%, reversing part of the war premium accumulated while the strait was largely closed.
The Strait of Hormuz, which carries approximately 20% of global oil and liquefied natural gas flows, is one of the most significant passages for international trade. Its narrow geography provides Iran with strategic leverage during conflicts to restrict maritime traffic and impact energy markets.
During recent tensions, only a limited number of commercial vessels traversed the strait daily. The latest development concluded a volatile period where the passage remained mostly closed amid US-Iran negotiations over a peace agreement.
Bitcoin’s Outlook
The reopening of the Strait removed a significant near-term threat to risk assets, as declining oil prices tend to alleviate inflation concerns and mitigate fears of increased energy-driven volatility—a context that can bolster speculative assets previously pressured by regional escalations.
Shifts in market sentiment are already visible in derivatives markets. On Coinbase-owned Deribit, the $80,000 call option has become one of the most favored trades, with a notional value exceeding $1.5 billion. The next prominent bullish positioning cluster is at $90,000, valued at approximately $914 million.
Prediction market data from Polymarket shows that the likelihood of Bitcoin surpassing $80,000 before year-end has risen above 88%, suggesting traders view this level as an achievable near-term target rather than a distant possibility.
This article originally appeared on CryptoSlate.